fizzybaba:

DOLLAR PRICE TO COME DOWN PRETTY SOON,

check this out,

The Central Bank of Nigeria has rolled out its revised guidelines for foreign exchange market  operations in line with the recently announced liberalised regime.

In a circular to authorised dealers and the general public, signed by the Acting Director, Trade and Exchange Department, CBN, Mr. Batari Musa, and posted on the website on Wednesday, the apex bank said the Wholesale Dutch Auction System would, with effect from Monday, July 13, replace the Retail Dutch Auction System.
This, it said, was to stimulate activities in the inter-bank market and stabilise the foreign exchange market.

Former CBN Governor, Prof. Chukwuma Soludo, replaced the WDAS with RDAS as an interim measure to tackle excessive demand for foreign exchange for non-approved transactions, as the naira faced pressure in the face of dwindling oil revenues.

In the latest circular, referenced “TED/FEM/FPC/GEN/01/110”, the apex bank said henceforth, it “shall intervene in the foreign exchange market through the WDAS” and announce on Monday and Wednesday the amount on offer for each auction at 8.30am.

It said copies of the announcement might be obtained from its trade and exchange department at the CBN Head Office in Abuja.

According to the circular, “Under this system, authorised dealers shall submit their bids on Monday and Wednesday, as per the attached format, duly signed by two authorised signatories for any particular auction session between 9.00am and 10.30am on the day of the auction; and submit bids for no more than three tranches per auction, while the Central Bank of Nigeria reserves the right to reject bids that are deemed to be unrealistic.”
It said the bids should be submitted via Reuters Dealing 3000 Xtra System to the Abuja dealing line.

The CBN, however, added that hard copies of bid requests should be submitted to the TED, saying that the minimum bid amount by an authorised dealer would be $100,000, while the currencies of transaction would be the naira and the United States dollar.

According to the guideline, the CBN shall announce the result of each auction by 1.00 pm on the day of auction apex bank while a copy of the result may be obtained from the trade and exchange department in Abuja.

It said, “Successful bids shall be advised by 2.00 pm on auction day; authorised dealers shall ensure that they have adequate naira cover in their current accounts with the CBN; and the CBN shall promptly debit the current accounts of banks with the naira equivalent of the foreign exchange purchased, at their bid rates.

“The CBN shall deliver US dollars sold to the banks to their Correspondent Bank Account used for WDAS transactions; the CBN shall effect delivery of foreign exchange purchased by each authorised dealer within one business day (T+1) after the day of the auction result; and a business day shall be defined as a day in which banking business is carried out in Nigeria.”

The apex bank, however, said that funds purchased from it at the auction should be used for eligible transactions only, subject to stipulated documentation requirements, adding that such funds would be transferable in the inter-bank foreign exchange market.

It said the apex bank might also purchase foreign exchange from authorised dealers and other participants, such as oil companies at their offer rates, adding that it would deliver the naira cover for US dollar bought from the banks to the banks’ current accounts at the CBN.

The circular also said that the foreign exchange Net Open Position of banks had been increased from 2.5 per cent to five per cent of shareholders’ funds, with effect from July 13, 2009.

Contravention of any of the forex market regulations, the CBN said, would attract appropriate sanctions as spelt out in the provisions of relevant laws and the CBN guidelines.

the implication of the above technical jargon is that dollar would be made more available thereby forcing down the price in the black market.


thank goodness, our tokunbo cars almost selling for the price of new can now become affordable.

imagine used honda halla going for 600k!

Wow, The simple act of flooding Nigeria with dollars and restricting access to where it can be purchased from, will force down the high current foreign exchange rate of the Dollar to the Naira

Lets forget the existence of the International Monetary Fund, the Federal Reserve Bank of New York, the European Central Bank, Bank of Canada, etc, who follows trends and economic factors like inflation, industrial production and geopolitical events to set the rates for foreign exchange market then How preposterous


THIS CAN ONLY HAPPEN ONLY IN NIGERIA NIGERIA I HAIL THEE

, the implication of the above technical jargon is that dollar would be made more available thereby forcing down the price in the black market,

fizzybaba:

i see.

this country is bedevilled with so many problems and u cant but wonder if they are not spiritual